![BEP-20 and ERC-20]()
✅ Introduction
The crypto ecosystem is brimming with token standards — each with its unique purpose, network, and features. If you’ve interacted with Binance Smart Chain (now BNB Chain), you’ve likely heard of BEP-20 tokens. But what exactly is BEP-20, and how does it relate to the well-known ERC-20 standard that powers thousands of tokens on Ethereum?
In this article, we’ll break down BEP-20, revisit ERC-20, and compare these two standards side by side, helping developers, investors, and crypto enthusiasts understand their similarities, differences, and when to choose one over the other.
✅ What Is BEP-20?
BEP-20 is a token standard on the BNB Chain (previously Binance Smart Chain). It defines a set of rules that a fungible token must follow to operate smoothly within the BNB Chain ecosystem.
- Modeled after ERC-20: BEP-20 is heavily inspired by Ethereum’s ERC-20 standard, ensuring compatibility and familiarity for developers.
- Fungible tokens: Each BEP-20 token is identical to another of its type, just like dollars in your wallet.
- Use cases: Stablecoins (like BUSD), governance tokens, DeFi yield farm tokens, and more.
- Interoperability: BEP-20 is often used for bridging assets from Ethereum and other blockchains onto BNB Chain, benefiting from faster transactions and lower fees.
Example: Popular BEP-20 tokens include BUSD (Binance USD), CAKE (PancakeSwap), and BAKE (BakerySwap).
✅ What Is ERC-20? (Quick Recap)
ERC-20 is the original and most widely adopted token standard on the Ethereum blockchain. Launched in 2015, it established a simple framework for creating and managing fungible tokens via smart contracts.
- Foundation of DeFi: ERC-20 enabled the ICO boom, laid the groundwork for decentralized exchanges (DEXs), and continues to power stablecoins like USDT and USDC.
- Standard functions:
totalSupply, balanceOf, transfer, approve, and transferFrom are typical functions every ERC-20 contract implements.
- Network: Runs on Ethereum, benefiting from its security and decentralization but facing higher gas fees and sometimes network congestion.
Example: Tokens like Tether (USDT), Chainlink (LINK), and Uniswap (UNI) all follow the ERC-20 standard.
✅ Key Similarities
While BEP-20 and ERC-20 exist on different blockchains, they share a lot in common:
| Feature |
BEP-20 |
ERC-20 |
| Fungible |
✅ |
✅ |
| Smart contract-based |
✅ |
✅ |
| Supports DeFi |
✅ |
✅ |
| Widely adopted |
✅ |
✅ |
| Standard functions |
Similar |
Standardized |
BEP-20 vs ERC-20
Here’s how BEP-20 and ERC-20 differ when you dig deeper:
| Aspect |
BEP-20 |
ERC-20 |
| Blockchain |
BNB Chain |
Ethereum |
| Transaction fees |
Lower (a few cents) |
Higher (up to $10+) |
| Transaction speed |
Faster (~3 sec blocks) |
Slower (~12 sec blocks) |
| Security & decentralization |
Less decentralized |
More decentralized |
| Ecosystem maturity |
Young, fast-growing |
Long-established |
| Cross-chain bridging |
Widely used for bridging ERC-20 |
Bridges exist but less used for large migrations |
✅ Why Developers Should Care
If you’re a blockchain developer or project founder, understanding these standards is crucial for planning your token strategy.
- Cost: Deploying a token on BNB Chain costs a fraction of deploying on Ethereum.
- Speed: Faster block times mean quicker transaction confirmations.
- Liquidity: ERC-20 has more established liquidity pools and exchange support.
- Bridging: Many projects launch on Ethereum and bridge to BNB Chain to tap into both ecosystems.
✅ Use Cases and Real-World Examples
| Use Case |
BEP-20 Example |
ERC-20 Example |
| Stablecoins |
BUSD |
USDC |
| DEX governance |
CAKE |
UNI |
| DeFi protocols |
BAKE |
AAVE |
| Bridged tokens |
ETH on BSC |
BNB on ETH |
✅ How to Create a BEP-20 Token
The process is very similar to creating an ERC-20 token because they share the same basic architecture:
- Write a smart contract implementing the standard BEP-20 interface.
- Use Solidity (same language as for Ethereum).
- Test it with Remix or Hardhat.
- Deploy on BNB Chain using MetaMask and BscScan.
- Verify the contract on BscScan for transparency.
Tip: If you’ve built an ERC-20 token, you can adapt the code for BEP-20 with minimal changes.
✅ Conclusion
BEP-20 and ERC-20 serve the same fundamental purpose: making fungible tokens easy to create and manage. While ERC-20 offers stronger decentralization and deep liquidity, BEP-20 stands out for its affordability and speed.
As multi-chain projects become the norm, many tokens now exist in both formats, connected via bridges, giving developers and users the best of both worlds.
✅ Final Thoughts
Choosing between BEP-20 and ERC-20 depends on your goals:
- Need low-cost, high-speed transactions? Try BEP-20.
- Need rock-solid security and huge liquidity? Stick with ERC-20.